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Fresh Details on the Fed Rescue of A.I.G. Insurance Units

By Dealbook December 2, 2010 2:37 amDecember 2, 2010 2:37 am

The documents released by the Federal Reserve on Wednesday provide new details of how close to the precipice some insurance subsidiaries of the American International Group came in 2008, Mary Williams Walsh reports in The New York Times.

They also show just how far Fed officials veered from their usual duties to keep those subsidiaries from toppling, delving into an industry not regulated at the federal level. The state regulators responsible for their oversight could not see the insurers’ whole problem, which spread across a number of states.